Decisions of Low Carbon Supply Chain with Corporate Social Responsibility and Fairness Concerns

To compare the decisions of corporate social responsibility (CSR) and fairness concerns in a low carbon supply chain (LCSC), decentralized decision making with and without retailer's fairness concerns are constructed based on manufacturer's CSR. The possibility of LCSC coordination is explored by a costsharing contract. It is shown that the manufacturer's CSR contributes to LCSC. Although his profit is reducing, the utility and consumer surplus are increasing. The retailer's fairness concerns threaten the development of LCSC by reducing the manufacturer's low-carbon invest. Furthermore, cost-sharing contracts can be a coordinating parameter in the LCSC with retailer's fairness concerns.